After years of consternation over plans to develop the site, which includes the national surfing reserve The Farm, Killalea will be handed over to the National Parks and Wildlife Service from the Reflections holiday parks group, and will be renamed Killalea Regional Park.

Little is expected to change immediately other than signs, Shellharbour Mayor Chris Homer said, but an event was planned for July 24, an opportunity to celebrate the community campaign that brought this outcome.

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"I'm ecstatic," he said.

"It's the win the community wanted, this the win that the community drove for, and it's going to an organisation that has protection in perpetuity in focus."

"NPWS will come in and bring the park up to scratch, as it's been let to do by Reflections unfortunately - overgrown, infrastructure not well maintained," he said.

NSW Environment and Heritage acting co-ordinator-general Atticus Fleming said the gazettal of the 260 hectare park meant it would be managed in perpetuity for its environmental, cultural heritage and recreation values.

"The transfer of Killalea to NPWS will ensure visitors can continue to enjoy the park, while adding greater protection to its threatened species and cultural heritage," Mr Fleming said.

"The transfer won't create any immediate changes to visitor access, and locals will continue to be able to access and enjoy the park as they do now.

"Visitors can expect to see new NPWS park entry signs, NPWS vehicles and staff working in the park.

"From August, we will start consultation with local residents, Aboriginal groups and other stakeholders to inform the development of a new Plan of Management."

This process would involve community consultation.